The case between Ripple and the US Securities and Exchange Commission (SEC) is still pending despite the recent flurry of developments. It all began in December 2020, when the firm and a few of its officials were charged by the SEC for unlawfully raising $1.3 billion by selling its native cryptocurrency, XRP, through an unregistered securities offering.
Recently, the Ripple community had reason to rejoice. They first applauded the election of Donald Trump as president, who made a pledge to fire SEC Chairman Gary Gensler as soon as he took office. The head of the regulator, who is well-known for his anti-crypto views, later announced that he would leave his position on January 20—the day of Trump’s inauguration.
As anticipated, these events have caused XRP’s price to soar once again and sparked rumors that Gensler’s replacement may shortly officially end the legal dispute. The former chairman of the CFTC, Chris Giancarlo, most recently asserted that the Ripple and SEC case might be dismissed under Trump’s presidency.
“I would recommend that regulatory agencies drop a lot of these cases where they’ve lost. I think they should drop the XRP case. I would bet that they would,” he added.
Other Crypto Heads Predict the Same
Recently, American lawyers Fred Rispoli and Jeremy Hogan also discussed the issue. According to the former, all non-fraud crypto litigation brought throughout the years may be dismissed by the Commission. He thinks the previously determined sum of $125 million might be used to resolve the Ripple case.
“It would be…awkward to settle for less than what was already awarded by a Court! The Coinbase and other cases in litigation will simply be dismissed. This will take some time. Not January, but perhaps before summer. That’s my call, and I’m sticking to it,” Hogan said.
Rispoli believes it is “unrealistic” to abandon the litigation, asserting that the SEC’s ultimate victory is the $125 million penalty for Ripple. Additionally, the lawyer predicted that the next probable leadership of the watchdog would realize the stupidity of the case and settle it eventually.
“This might include a reduction in the fine and an agreement that current sales of XRP by Ripple are sufficiently structured to not be investment contracts,“ He added.
Stuart Alderoty, the CLO for Ripple, recently raised speculation that the case’s outcome may be imminent. He praised the efforts of CEO Brad Garlinghouse and the entire staff in a mysterious post on X, hinting at a total legal win.
Conclusion
The ongoing legal battle between Ripple and the SEC, stemming from allegations of an unregistered $1.3 billion securities offering via XRP, remains unresolved. However, recent developments, including SEC Chairman Gary Gensler’s upcoming resignation and speculations of regulatory shifts under a potential Trump administration, have reignited optimism among the XRP community.
Notable figures, such as former CFTC Chairman Chris Giancarlo, have suggested the case could be dropped, while lawyers like Fred Rispoli anticipate a settlement, potentially reducing penalties and clarifying XRP’s status. Ripple’s CLO Stuart Alderoty has also hinted at a favorable resolution, further fueling speculation of an imminent conclusion.
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.